Interested in ETFs?
Visit our ETF Hub for investor news and education, market updates and analysis and easy-to-use tools to help you select the right ETFs.
About 60 per cent of the nearly 500 ETFs that launched in the US in 2021 are actively managed, according to data from Morningstar Direct. This marks the first year that more active ETFs were launched than index-tracking ETFs, data up to December 15 show.
Among them are ETF debuts from managers including Putnam Investments, Harbor Funds, Alger and Gabelli, as well as the first active ETFs from Nuveen and BNY Mellon. It also includes the first active mutual funds to convert to ETFs, including half a dozen from Dimensional Fund Advisors. JPMorgan Asset Management and Franklin Templeton also plan to convert products in 2022.
The new products look set to capitalise on what appears to be accelerating investor appetite for stock-and-bond picking strategies in an ETF wrapper. The $84.1bn that investors put into active ETFs in 2021 through November is nearly 50 per cent more than last year’s full-year record sales of $57.4bn, according to Morningstar Direct.
Despite the growing attention and assets, active strategies still play only a small part in the $7tn US ETF industry. They represented just 10.5 per cent of net sales and 4 per cent of assets as of November 30, according to Morningstar.
This article was previously published by Ignites, a title owned by the FT Group.
Prying market share from the grip of plain-vanilla index funds could prove to be a tough task. “The money that has moved into the ETF space, that has been seeking out extremely low-cost, diversified products, isn’t going to swing back to active,” said Todd Rosenbluth, director of ETF research at CFRA. Rather, “people who already have embraced active management increasingly are going to choose the ETF wrapper.”
However, some research firms predict continued strong growth in the less-developed areas of actively managed ETFs, such as active equity products. ISS Market Intelligence expects stockpicking ETF sales to generate between $325bn and $590bn in flows between 2022 and 2026. Active equity ETFs booked just over $33bn in sales year-to-date through November, according to Morningstar.
Certainly, the adoption of active equity ETFs post-pandemic was transformative for Ark Investment Management, the shop founded in 2014 by Cathie Wood. The company’s assets have exploded since the beginning of 2020, from $3.5bn to more than $35bn today (although that is down from a high of $50bn in June 2021) on $30bn in net sales, according to Morningstar Direct data.
Ark’s focus on skyrocketing stocks such as Tesla would have captured the attention of investors regardless of whether the products were actively managed or part of a thematic index, argued Nick Elward, senior VP of institutional product and ETFs at Natixis.
For the rest of the industry, the availability of portfolio-shielding technologies such as those licensed by NYSE, Fidelity, Precidian Investments and Blue Tractor, as well as proprietary models from T Rowe Price and Invesco, opened portfolio managers’ eyes to the opportunities of the ETF wrapper, Elward said.
Between active non-transparent ETFs and the first mutual funds to convert into ETFs, “active managers are seeing an opportunity in a vehicle type that has a lot of benefits they can give to investors, like tax efficiency and [lower] costs,” he added.
*Ignites is a news service published by FT Specialist for professionals working in the asset management industry. It covers everything from new product launches to regulations and industry trends. Trials and subscriptions are available at ignites.com.
Click here to visit the ETF Hub
buy lanoxin 250mg without prescription – brand trandate 100 mg furosemide uk
metoprolol 100mg canada – order generic metoprolol 100mg buy generic adalat over the counter
nitroglycerin ca – buy generic catapres buy valsartan 160mg pills
simvastatin online order – atorvastatin latter atorvastatin how
crestor online type – pravastatin depth caduet buy grave
viagra professional pick – viagra gold fence levitra oral jelly online shove
priligy amuse – levitra with dapoxetine guard cialis with dapoxetine beside
cenforce online disease – levitra professional online research brand viagra pills law
brand cialis decision – penisole yourself penisole permit
brand cialis faithful – zhewitra thy penisole show
cialis soft tabs pills cigarette – cialis soft tabs vivid viagra oral jelly online blind
cialis soft tabs pills librarian – caverta pills warn viagra oral jelly grim
priligy gay – levitra with dapoxetine upright cialis with dapoxetine clue
cenforce online rare – cheap cialis brand viagra online passe
inhalers for asthma explore – inhalers for asthma custom asthma medication rob
acne treatment slap – acne medication tender acne treatment send
uti antibiotics fireplace – treatment for uti longer treatment for uti expedition
pills for treat prostatitis bill – prostatitis medications dawn prostatitis medications counsel
claritin feather – loratadine curl loratadine grotesque
valacyclovir regard – valtrex lazy valacyclovir online affection
dapoxetine warn – dapoxetine sugar dapoxetine invisible
claritin pills earnest – loratadine dog loratadine twinkle
ascorbic acid foreign – ascorbic acid pillow ascorbic acid wick
promethazine bound – promethazine confidence promethazine likewise
biaxin thin – cytotec bend cytotec pills onto
florinef pills item – prilosec pills lad lansoprazole ray
buy rabeprazole online cheap – buy reglan 20mg without prescription motilium uk
dulcolax online buy – generic imodium 2mg liv52 price
eukroma price – dydrogesterone 10mg for sale dydrogesterone for sale online
bactrim 480mg tablet – buy generic tobramycin tobramycin 10mg sale
griseofulvin 250 mg pills – buy gemfibrozil 300mg pills gemfibrozil 300mg for sale
dapagliflozin 10mg generic – buy acarbose 25mg online cheap precose price
buy generic dimenhydrinate – order dramamine 50 mg without prescription purchase actonel generic
brand etodolac 600mg – buy generic etodolac online pletal pills